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The centerpiece of the pro-small business tax changes is Section 199A, the Small Business Deduction. This deduction is important because more than 90% of small businesses are organized as pass-throughs (S corporations, LLCs, sole proprietorships, or partnerships), not as C corporations.Pass-through business owners (S corporations, LLCs, sole proprietorships, or partnerships) – regardless of the type of business they own – can claim up to a 20% tax deduction on their share of the business’s income up to $164,900 in tax year 2021, or $329,800 for those filing jointly. For small business owners whose taxable income exceeds the threshold, the deduction is subject to formulaic limitations. You can still benefit from the deduction if your business is employee intensive, or you make capital expenditures. More than 81% of small business owners believe the Small Business Deduction is important to the health of their business. However, without additional congressional action, these important small business provisions are scheduled to expire after 2025 alongside other helpful tax benefits. Read more about the Small Business Deduction.